Medicaid Fraud Doesn't Pay, Yet

A bill that would allow Kentucky to collect money from Medicaid fraud busts has again been introduced in Frankfort. House Speaker Greg Stumbo filed the bill, which would also protect and possibly reward whistle blowers who report fraud in Medicaid or any other areas of state government. Stumbo says the bill is needed to help Kentucky get money that usually ends up in federal coffers.

“It’s a choice of revenues, state or federal, the states that don’t have a state law don’t have the option to get any of that forfeiture money or penalty money,” Stumbo says.

The bill passed the House last year. The Senate passed a similar bill that only dealt with Medicaid fraud, but the two sides couldn’t come together for a compromise.

Stumbo says he thinks some form of legislation that deals with fraud revenues will pass both chambers this year.